Thinking how a child has changed our lives, I believe we are even more frugal since having our daughter. To be clear, having children is more expensive. Clothes, diapers, toys and preschool all require higher expenditures, even with gifts from relatives providing some of the items.
So how do I know we've become more frugal? Simply because we are still spending about the same amount before and after having a child. Looking at our monthly expenditures, our living expenses (food, clothing, utilities, entertainment, etc) increased 0.5% after we had a child. However, preschool, activity classes, clothing and toys require us to spend 5% more per month. Thus, I conclude we must be more frugal after having a child.
While I have not looked at it in detail, I expect that most of the savings has come from what we used to spend on entertainment. We now do fewer high cost entertainment options and spend less on eating out.
For more on Crossing Generations , check back every Thursday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC
Thursday, February 22, 2007
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2 comments:
Children make you more responsible with money, causing us to be frugal. Before kids I use to hang out and spend money only foolish items. Now I rather save and invest it . Kids make you think about the future more.
Money Monk,
Thanks for your comment and examples. As with you, our priorities have changed a lot since having kids.
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